ConocoPhillips Reports 2022 Capital Expenditures Budget; Announces Three-tier Returns Of Capital

ConocoPhillips (COP) announced its planned companywide 2022 capital expenditures of approximately $7.2 billion. The company noted that the planned 2022 capital expenditures includes $0.7 billion associated with the recent Permian transaction and are consistent on an underlying basis with the market update provided in June 2021.

Based on the preliminary capital budget, ConocoPhillips expects to deliver average full-year 2022 production of approximately 1.8 MMBOED, including expected annual production from the recent Permian transaction of approximately 200 MBOED. On a pro forma underlying basis, 2022 production estimate represents underlying low-single-digit percentage production growth from 2021.

The company has set 2022 return of capital to shareholders at approximately $7 billion, approximately 16% increase from 2021. ConocoPhillips is initiating a three-tier capital return program that will consist of an ordinary dividend tier, a share repurchase tier, and a newly authorized quarterly variable return of cash (VROC) tier.

The annualized current ordinary dividend is estimated at approximately $2.4 billion. Estimated share repurchases are approximately $3.5 billion. The VROC, of approximately $1 billion, is anticipated to be distributed ratably on a quarterly basis. The first VROC of $0.20 per share will be paid on Jan. 14, 2022, to shareholders of record as of Jan. 3, 2022.

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